The cash flow from investing activities section appears exactly the same, whether the company uses the direct or the indirect method to prepare the statement of cash flows
Indicate whether the statement is true or false
TRUE
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Gross sales plus sales returns and allowances is called net sales
Indicate whether the statement is true or false
If inventory is excessive, which item below is not true?
A) Solvency is reduced. B) Taxes increase. C) Ordering costs increase. D) Storage costs increase.
A mechanic, who repairs a motor car and is not paid for his services, can sell the car to
recover the cost of his services. Indicate whether the statement is true or false
Which of the following illustrates the internal control procedure—separation of duties?
A) Cashiers must not have access to accounting records. B) External auditors will monitor internal controls. C) Electronic devices must be installed to reduce theft. D) The invoices and other documents must be pre-numbered.